Glenwood expansion streamlines harvest lines
December 2011 → How can our account advisors help you? Page 5
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Glenwood expansion streamlines harvest lines
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fter a wet spring, our departments are right on track for the year-end numbers. Higher rail freight and lack of trains put us behind budget going into spring, but through the spring and summer, we regained our financial balance, which put us back on budget by our fiscal year end Aug. 31. At our upcoming annual meeting on Feb. 21, at the Holiday Inn in Alexandria, we will be able to share the year end numbers with you. Patronage checks will also be handed out. Come early for morning informational sessions in grain, energy, and agronomy. In November, CHS announced record earnings for fiscal 2011 (Sept. 1, 2010 - Aug. 31, 2011) of Brad Manderschied $961.4 million, of which an estimated $421 million will be returned to CHS owners as cash patronage, General Manager equity redemptions and preferred stock dividends during fiscal 2012. Prairie Lakes Coop was made possible by the merger of several local cooperatives into CHS Inc. and several CHS facilities in our region. By being part of CHS Country Operations, we continue to grow and service our customers’ needs. One of the great accomplishments in the past year was the $5 million expansion project at the Glenwood Elevator. The upgrades at our 100-car shuttle facility include a 750,000 bushel bin, a 500,000 bushel bunker, an additional dump pit, inbound and outbound scale, and an office for grain grading. It was close, but everything was in place and working by harvest. Our next project will be in the Long Prairie area. Long Prairie has seen tremendous growth in the past five years. This past year, we handled more than 2.5 million bushels as producers in that area transitioned from livestock and dairy operations to more cash cropping. This allows them to market more grain instead of feeding it. Better genetics have also played a part in the growth. Late planting, early frosts, hot weather during pollination, and green snap limited our producers’ yields in some areas. But fall weather was exceptional for harvesting, and we were able to get the harvest in with no major issues. Our company is strong because of the dedicated employees who put our producers first. Over the past few months, we have lost staff in various positions, and though we are glad those people had the opportunity to move on, we also realize it is our responsibility to bring in qualified people to replace them. We have been conducting many interviews to fill those spots and look forward to introducing you to the new employees in the coming months. Thank you for your patronage! I would like to wish all the patrons and employees of Prairie Lakes Coop a Happy Holiday Season. [email protected]
December 2011
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Exploring Energy W
e have just finished the busiest part of the year in the energy department and want to thank all our customers and producers for their patronage. We had a few challenges these past few months as the Alexandria terminal ran dry a Jason Fier few times, forcing us to bring in fuel from Certified Energy outside the area to keep tanks full. The Specialist booming oil industry in North Dakota is using a lot of fuel, which will continue to be a problem into the future. Supply dried up because of the function of product movement. You can only push so much fuel through the pipelines at one time. Just 30 years ago, harvest took several months to finish, but now the bulk of harvest is condensed down into a two-week timeframe. With no rain, there were no breaks to replenish and deliver, which intensified the problem. Having adequate on-farm storage can insure that you have fuel when it is needed most. We have tank and pump packages available, along with payment plans to cover those purchases. Thankfully, our corn drying season did not turn out to be as challenging as we thought it might be following the wet, late spring. Ideal weather conditions later in the summer and
Mark that date!
Our annual meeting, Feb. 21, is fast approaching. We will have a variety of information sessions before the noon meal, and member-owners will be able to pick up their patronage checks at the meeting. Julie Fox with CHS Equity will also be there to answer any questions you might have about equity redemption, estates, trusts, partnerships, or any other equity issues.
going into fall kept our drying season to below average. Now we are looking toward the future. In the next couple months, we will be putting in a bulk fuel site at the Glenwood elevator. On site will be two 10,000 gallon tanks, with a third to be installed later. These will be filled with Cenex Roadmaster/Wintermaster and Fieldmaster diesel. Not only will this be convenient for our customers, who will be able to fill up their semis when delivering to Glenwood’s upgraded grain facility, but we will also be able to fill our own trucks there. Customers will swipe cards at the facility and will receive monthly invoices. We hope to have the project completed in the next month or so. Now is the time to considering contracting your diesel fuel. In the last 10 years, if you contracted during the months of December, January and February, you should have been able to at least break even. Contact me at 320-293-9473, Steve: 320-239-2226, or the Starbuck office for more information. Reminders: Keep your tanks clear of snow for energy deliveries. SPCC regulations, for farms established after Aug. 16, 2002, have been pushed back to May 2013, but producers should still be working on having plans in place for oil spill containment. Farms established before that date should continue with their current SPCC plan but implement an amended plan no later than the 2013 date. We will have someone from CHS and/or the EPA at the annual meeting to talk about these regulations.
We are lucky to have someone like Julie come to our annual meeting so take advantage of her expertise while she is there. She can fix any errors so you are set for the future. Don’t forget about our Customer Resources tab at PraireLakesCoop.com. Through registration in this program, you can see your tickets, invoices and active contracts with Prairie Lakes. The information is updated daily. Enrollment
[email protected]
is through the website and usually takes 1-2 business days for approval and account access. And don’t forget, the countdown is on. After Christmas, there are only 55 days until spring training. Go Twins!
Gene Mueller Controller
[email protected]
Financial News by Tracy Swenson, Business Solutions/Financing & Credit
Confina Financial changed its name to CHS Capital in August to better reflect its alignment with CHS and the cooperative system. Prairie Lakes has merged its in-house credit program with CHS Capital to streamline processes while providing producers with a very competitive option for financing everything that today’s growers need to maximize their farm’s potential. CHS Capital offers extremely competitive interest rates on inputs and products from Prairie Lakes with high available credit limits. In some cases, producers can borrow money with no interest due. We also have a buy-down interest program, and the credit limit for the simple one-page application has been increased to $200,000. Set up your financing early to take advantage of early order discounts. You can lock in lower rates by taking advantage of our finance program. Because we are your cooperative, we have an entire range of experts at your disposal to connect your grain marketing to your ag inputs and financial inputs for a strategic partner for your operation. We understand ag cycles and we have more flexibility in our financial outlook because we understand the problems that producers face on a day-to-day basis. If a crop is wiped out, we know as soon as you do because our Prairie Lakes account advisors keep us updated regularly. If interested in finding out more, contact me at 320-239-2226, or Don Geiszler at 320-219-0777. December 2011 2 2 December 2011
Fall harvest sped past G
reetings everyone. Fall grain harvest went very fast. Who would have thought that with all the rain and storms this summer, it would dry up and stay warm? Combining was all done by the end of Oct, and most of the field work is complete also. With the late cold, wet spring, I would never have imagined the crops would come in dry. Our area got hit with many storms and very high winds, causing widespread green snap and drowned out acres so yields dropped quite a bit. Soybean yields are down about 25% with the same on corn. Some areas were better; some worse. Dan Kvitek With harvest done and put away, basis has improved with the Grain Marketing smaller crop and very little movement. That is understandable. Division Manager I don’t know how much better the basis will get, but the board was down almost a buck in early December so one never knows. Ethanol margins have been good and are making up for the lack of export demand. Please be checking your grain bins as reports of corn getting warm have been coming in. With the warm fall, corn did not get cooled down. I would like to thank all our patrons for their support. I hope you have Happy Holidays and a safe and prosperous New Year. I would also like to thank all the employees for the great job they did. [email protected]
Precision Ag Update
Nathan Kosbau, Precision Ag Specialist 320-360-3367 As the fall season draws to a close, many growers are inquiring about the application of yield data from the fall. The 2011 growing season was incredibly difficult, and most satellite images show many problems including drown-outs, disease, and green-snap. Yield data identifies field problems but also shows variations exist in the field. Many growers have commented that they might not analyze the yield data due to all the weather factors, but an important piece is missing from that equation. Other field variability factors (such as nutrient availability problems) become more apparent when plants succumb to environmental factors. Prairie Lakes Coop is utilizing this information, along with other more favorable growing season years, to continually develop a sustainable approach to managing yield zones and maximizing profitability. By thoroughly examining all the data resources available, yield gains can be made, even in the most difficult growing seasons.
Seed shortages
Mike Kragenbring, Elrosa 320-250-6857 Seed shortages are affecting decisions of producers across the country. Demand is high, but production problems from weather issues across the country caused seed shortages with all companies. We are recommending that producers order early so they have a better chance of getting the seed they want. Because of the wet weather last spring and the wind later on, a handful of products stood out. Consistently, hybrids that have been around longer seem to be doing better. Make sure that you choose products with a good track record. There are a lot of new soybean varieties, and a lot of companies rolled their line-ups over, bringing in new products, new technologies, and advances in breeding. Prairie Lakes works with Croplan, Asgrow-Dekalb, Northrup King, and Mycogen. Contact your account advisor about the type of seed you want and get it ordered as soon as possible.
Your country resource
As a grain marketing consultant, I am available to help producers at all of Prairie Lakes’ locations, Martha Licari answering Grain Account any questions Advisor producers might 320-808-9401 have and keeping them up-to-date on the latest news in the markets. I can place marketing orders, help figure input costs, evaluate profit/loss sheets, and guide producers through a variety of scenarios relating to their grain marketing needs. My schedule allows me the flexibility to meet with producers wherever it is most convenient. I also visit Long Prairie, Cyrus, and Elrosa every week to talk with producers about marketing plans. We offer producers even more indepth information, knowledge and background that might be helpful when making marketing decisions. I first started working out of our Lowry location as a bookkeeper and office manager. In 2009 I transitioned fulltime into my current role as grain account advisor. If you need help with your grain marketing needs or have any other questions, call me or any of our grain locations. I would be glad to meet with you and help you determine the best plan for your farm.
Answer from back page:
It would cost $24,263 to buy one set of items from “The Twelve Days of Christmas.” Seven swans-a-swimming are the most expensive at $6,300.
December 2011
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Reflecting back while looking forward in agronomy Thanksgiving is over. The harvest is done, and we now have a chance to reflect on what worked and what Bill Frikken didn’t in your 2011 Agronomy Division crop. There were Manager a lot of weather challenges that lowered yields this year, but harvest weather was about as good as it gets. We won’t think about last year for too long, however, because 2012 planning has already started. We had an excellent fall fertilizer and lime season. Precision led the way with grid sampling, making recommendations to take advantage of managing every acre. I am sure you have heard by too nowearly thattoseed is in shortforsupply It’s not lock-in profits 2012. as New there are going to be offering more corn acres Horizons is already producers planted next to year. A lot companies an opportunity lock-in theiroffertilizer are andcrop fertilizer pricespromoting for 2012. At additives this time, new sales can also be contracted, andand withsome pricesaren’t high, enhancers. Some work noweffective is the time capitalize on our historic profit as sotocheck with account margins. advisors before you make a decision. Our “At thisadvisors point, with some the numbers account can helpofyou with farm we’ve punched in, producers can gross planning, weed control, plant health and $100-200 per acre for next year’s crop,” other production details as well. said Don Geizler, a country loan officer with Fertilizer markets are softening a Cofina Financial located out of New Horizon’s
little right now. As of the beginning of December, urea and potash have dropped slightly. This, like all of the other markets, could change daily. Liquid fertilizer still is in tight supply. One of our longtime employees has taken a promotion with CHS as a Sales Specialist with Country Operations. Mary Stalberger will be working with Country Operations business units like Prairie Lakes Coop throughout Minnesota, North Dakota and South Dakota, putting sales programs together and helping their sales personnel. Mary has worked for Prairie Lakes for many years and has been instrumental in our growth and success. Mary will be still available to Prairie Lakes but on a more limited basis. Mandy Fischer, whose Prairie Lakes responsibilities included marketing, advertising, web page, and annual meeting, took a job with CHS at Gettysburg, S.D., advancing her career with additional responsibilities. We will miss Mandy’s skills, but congratulate her on her advancement. Byron Fischer, a longtime technical account advisor for PLC, has taken a job with BASF covering all of South Dakota as a New Innovation Specialist. This is a new
Herman office. Geizler said this tandem approach of locking in fertilizer prices while contracting grain looks to be a prudent approach. If producers pay for 25 percent of their 2012 Nick Smeby, Long Prairie, 320-732-2149 fertilizer purchases right now, the remaining 75 Long percent is notisdue until January 2012. Lakes trade territory Prairie unique to the Prairie New Horizons has financing available because in the last decade producers on smaller acreages through Cofina to provide for this without have transitioned from feed crops and pasture to cash crops. creating issues with 2011 lines of credit. As the acres are transitioned, producers need to think about Cofina can help producers with the entire the nutritional needs of thedown. crops being planted. Not many loan, including the 25 percent acres aresnow fertilized in the we into are much busier in the As the melts and youfall getsoback spring a per acre basis. the field,onthere will be little time to think about toto plant. Use Thisthese is theissues timeinofthe therush year be thinking about seed your time wisely now to think about 2012 purchases too, especially with the widespread seed shortages crop planning. affecting the industry. Look at putting prepay down on Also, don’t forget that New Horizon’s infertilizer as well as any other chemicals you might be needing. house extended credit program deadline is Chemical March 25. prepay incentives continue through February. For more information on 2012 fertilizer prices and grain contracts, as well as financing information, contact your local agronomist. You can also contact Don at 320219-0777 or Russ Rapp, New Horizons credit manager, at 320-677-2251. 4 December 2011 4 December 2011
position wih BASF but fits Byrons’ skills very well. Alicia Meissner, an account advisor and support person for operations and crop insurance, has taken a insurance position with another company. We will miss her skills. Congratulations to all of these former employees as they head to their new positions. We have recently hired Matt Bailey, a South Dakota State graduate who has been working with Centrol Crop Consulting for three years as a summer intern. Matt grew up on a family farm near Villard and will be an account advisor support person in Elrosa. Welcome aboard Matt. Hopefully I haven’t missed anybody. CHS is a company with unlimited career opportunities. Although we don’t want to lose qualified employees, we are proud to see them advance. Prairie Lakes employs more than 100 people throughout our eight locations so we are constantly looking for qualified job candidates as people come and go with new opportunities Thank you for the business , have a Merry Christmas, and a successful Happy New Year! [email protected]
Around the Country with our Account Advisors ... Prairie Lakes account advisors are great resources. We spend many hours in meetings during the winter months to make sure we are up-to-date on the latest information to pass along to producers. Call me or Guy Bray in Long Prairie anytime with questions or concerns you might have.
Account Advisors Outlook
Bruce Krabbenhoft, Park Rapids 218-255-4119 Seed production issues are causing shortages as producers begin to assess which varieties they will plant this spring. In my coverage area, I am advising producers to order their seed as soon as they can while there is still some availability out there. Here in Park Rapids, our shorter growing season, where we grow edible beans, soybeans, corn, and potatoes, means it is even more critical to find the right seed and get it ordered. At this point of the year, I have already sold more corn than normal. Instead of waiting until harvest was over, I was out talking to producers in the fields to bring in those seed orders while there was still supply. That’s about a month earlier than I would normally bring up the subject. We had a dry fall so many of the area fields did not get worked as they normally would. We have had little to no moisture since July, which will mean a backlog of work to be done this spring.
Lonnnie DeSmith, Starbuck, 320-808-8609 As account advisors and agronomists, our job is to help producers extract every bushel from every acre. Every bushel counts and it is our job to separate the snake oil products from the products that work. Every year, we see countless salesmen promoting their products. We analyze the data to determine which products should produce the best results for our producers. If we sell a customer a product that they invested in expecting a significant yield increase, it is our reputation on the line. Here are some of strategies that we feel will be successful for you this next year. Ascend, a plant growth regulator, has been showing much potential in more than 190 replicated trials. In those trials, 67 percent of the time plants showed an average 8.1bushel increase, which is a 5 percent increase. Over every acre planted, the average was an increase of 3 bushels per acre. That equals out to a $10-12 per acre advantage in farmers' pockets. Ascend, which is put on in the furrow, can be used for both corn and soybeans. Seed treatment. Prairie Lakes has a seed treater at the Hoffman facility where producers can bring their soybean seed to be treated prior to planting. Depending on disease pressure, there can be significant benefits to treating soybean seeds this year. Data in side-by-side trials supports increased yields. Variable rate fertility is the number-one strategy to increase yields. It doesn't matter if you have the best hybrids on the market if you don't have the fertility where you need it. Grid sampling can identify different areas of fertility so you can get the most out of each and every acre. Through grid sampling, you are fertilizing every acre to its maximum potential.
Kip Kovarik, Hoffman, 320-986-2454 Nitrogen management is a hot topic right now. ESN, or Environmentally Smart Nitrogen, is available in bulk bins at Hoffman, Park Rapids and Starbuck this year and could be a great tool in releasing nitrogen to your crops when they need it. ESN is an encapsulated poly-coated urea product that slowly releases nitrogen during a 60-day interval through triggers from temperature and moisture. Last year, when excess moisture caused nitrogen leeching, ESN would have been a perfect fit. The poly-coated capsule is activated by moisture and heat which melts the coating so nitrogen releases when nitrogen deficiencies typically show up. ESN works best on sandy soils where leeching occurs at a higher rate. In areas of high nitrogen loss, ESN shows a 15-20 bushel per acre increase over other nitrogen sources. ESN can be applied like any other urea product. It can be blended with potash and phosphates and is a 44-0-0 product. It can also be side-dressed at the V-4 growth stage. At mid-season, plants require the most nitrogen. If ESN is put down about one week before planting, that nitrogen is available at mid-season. ESN can be applied at a variable rate. However, ESN is not intended to be the plant’s only nitrogen source. You will also need nitrogen early in the season when plants start growing. Agrotain is another slow-release product, a urease inhibitor which prevents the vaporization of urea into the air. It increases the chance that urea will be absorbed into the soil after rain. Instinct and N-Serve are soil treatment bactericides. They prevent soil bacteria from converting NH4+ (Ammonium) to NO3- (Nitrate). They have the same active ingredient but are packaged in different formulations. N-Serve is for anhydrous ammonia and Instinct is for use with urea, 28% and manure. We’re to the point where we require better management technologies to follow a CSP program or for pushing those next few bushels in high management corn. Contact any of your account advisors and they can determine your nitrogen needs, helping you get the best yield for the best profit.
Make it a point to call your agronomist to discuss your strategy for next year.
December 2011
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Location Lowdown
Denis Stalboeger Long Prairie location manager
Long Prairie has experienced a tremendous amount of growth over the last three years. The location is primarily an agronomy and grain location with energy growth on the horizon. The grain department experienced the most growth over this period. Three years ago, we handled approximately 250,000 bushels, and today, after completing our fiscal year, we have handled 2.5 million bushels through a facility with a holding capacity of 80,000 bushels. As producers are looking for grain marketing expertise and the capability to handle a large volume of grain, they are finding it at Long Prairie. Precision ag has also accelerated our growth as producers utilize new technologies to maximize the profitability in their operation. Our employees have worked very diligently to make sure producers have the information and strategies they need to succeed. Most importantly, the growth in agronomy and grain is due to the optimism and the enthusiasm of employees and without them, the growth in Long Prairie, and PLC as a whole, would not have been possible. Our fall harvest was good with the improvements in Glenwood and Long Prairie making it the smoothest operating harvest ever. Thank you to our employees for their hard work and thank you to our patrons who have supported us through this season of growth.
Chuck Schlagel, Park Rapids Location Manager Park Rapids is a location in transition. Our location is experiencing growth in the size of farms, which was spreading our sales staff pretty thin. We have now doubled our sales staff and are making equipment changes to better handle the increased business. We are adding a new fertilizer leg and dump pit, and an addition to the current office will provide space for three more offices. All of these projects will result in a much appreciated upgrade at the facility to benefit both employees and producers. Producers in Park Rapids raise a variety of crops, from corn to potatoes to kidney beans. Potato acres are increasing for the 2012 season and if you have eaten a McDonald’s french fry, it might have come from growers right here in Park Rapids. If the sales force continues to keep increasing acres up here, we might be looking to add even more employees to our staff of 8 fulltime and 3 part-time employees. Agriculture is an exciting industry right now, and we look forward to what the future might bring.
Tim Guza, Glenwood Location Manager We have had another good harvest, and I would like to thank all the patrons for their continued support. I would also like to thank all the employees for their hard work and dedication. The bushels were short, but the quality was there. Last April we started a major grain expansion in Glenwood. This expansion added two new scales, a new 750,000 bushel bin, a second dump pit, 500,000 bushel bunker and an office. This new storage has brought the Glenwood elevator up to 1.9 million of upright storage and about 1.8 million bunker storage. With this new system, each truck has a card that the driver swipes at the probe and at the scale. This new system allows us to keep lines short and move the grain through the system fast. It has also allowed us to keep our substation grain flowing. Please feel free to contact your Prairie Lakes team for all your marketing needs.
Scott McKay, Hoffman Location Manager Precision ag continues to change the way producers are looking at their fields. Here at Hoffman, we covered record acres with our deep bander and anhydrous bar applications this fall. Our gridding acres also increased from about 25% last year to 50% this year. Precision fertilizing continues to be an area where producers are seeing the benefits translate into higher yields. This fall also brought beautiful weather for getting fall fertilizing done, and we’ve had the time to finish a lot of extra projects that will benefit our producers. And don’t forget as you plan for year-end taxes and begin farm planning for spring, our account advisors are ready to assist with those decisions.
Danny Olson, Lowry Location Manager We had a challenging harvest at our Lowry location when an Aug. 1 storm took down our wet and dry grain legs and the top of our grain dryer. There was extensive damage to our other facilities too. Our west driveway door was blown in. The storm took a piece of the feed house and dropped it through the roof of the dump pit area. It also took the steel roof off the office so rain got in, causing the office ceiling and insulation to fall down so we had to redo that as well. With no dryer and drying legs, we went through harvest piling wet corn on the ground. We had close to a million bushels of wet corn stacked up around here, but things were back together by the end of harvest so we caught up. Now things are back to normal, and we are thankful for the nice fall.
Gerald Imdieke, Elrosa Location Manager We are finishing lime applications and putting away equipment for the winter months. The account advisors have been busy getting seed orders and selling chemical and fertilizer for the new year. They also are starting to work on farm plans for the upcoming year. If you have not been contacted and are ready to plan, contact your account advisor. The account advisors are also training on new product information so they have the most accurate, up-to-date information to share with you. Thank you for your business this past year. 6
December 2011
Richard Kiehm, Cyrus Location Manager We are very thankful that harvest went so smooth this fall. Corn was of good quality, and it was a relief that we didn’t have to dry much. We were able to haul daily to the ethanol plant so we never went full. At the Cyrus location, we have picked up our bean pile. As we enter the winter months, we will be concentrating on OSHA regulations, making sure we are making our location as safe as possible for our employees and the producers who do business with us.
Denny O'Neill, Starbuck Location Manager The interest in precision agriculture has been exceptional this fall. Of the custom applications we did this fall out of Starbuck, 72% were precision ag, and we continue to grid sample more acres every day. Producers are seeing results with precision agriculture. We have been doing precision ag at Starbuck since 2007, and as they see results, growers have been very receptive to putting even more acres into the program. The results are showing up in the combine seats and on the combine yield monitors. We've had the biggest fall market for fertilizer at this location in the history of the company. Tonnage was up 15%, and application acres were up 25%, with all of the increase coming from precision ag. Prairie Lakes continues to invest in its precision ag program. We added another precision rig last spring, and both of our trucks are capable of mulit-bin precision rate. All our custom applicator machines are precision capable for applying dry fertilizer, ammonia and lime. Precision ag puts the right product on the right acre to help producers get full potential from every acre.
Meet Chuck Schlagel
Chuck Schlagel, the new location manager at Park Rapids, is steering the location through a transition as its customer base grows and various building Chuck Schlagel is the new location manager projects help Park at Park Rapids. He is Rapids extend its married to Jewell. reach even more. “In these economic times,” he said. “Agriculture is a fun industry to be in.” Chuck joined the company in September. He grew up on a farm near Murdock, where his love of agriculture began. He has worked in research and sales for Dekalb and also was district sales manager for Mycogen Seeds. He has managed Sanborn County Farmers Union Oil Company in Woonsocket, S.D., and most recently, he was manager of Clarks Grove Fertilizer LLC. Chuck is married to Jewel, and they have two sons: Ben, and his wife, Kelli, and their two children, Ashton, 4, and Lydia, 2; and their youngest son Joey, and his wife Nicole, and their two children, Bronwyn, 4, and Rowan, 2. Chuck has traveled the contiguous 48 states and Canada on motorcycle and has recently taken up bicycling. He enjoys the outdoors and spending time with his family.
Directors up for re-election Two of Prairie Lakes’ eight directors on the producer board are up for reelection at the annual meeting in February. Brian Jergenson, 54, of Glenwood, has been on the board for three terms. He was elected in 2001 and has been chairman since 2009. “I enjoy being on the board because I find ideas that help with the day-to-day operations of our own farm as well as hearing about what other peoples’ insights Brian Jergenson for the future are,” he said. Brian worked for more than 30 years at both Case IH and John Deere, which allowed him to meet many of the producers he now represents in District 3. In 1984, he bought his first farm ground and is a fourth generation farmer who raises corn and soybeans in the hills south of Glenwood. As a director, he promotes Prairie Lakes Coop but also communicates with the producer-owners that he represents, listening to their concerns and bringing those concerns to the board room. “I’m comfortable with most situations that arise now and have a good feel for Prairie Lakes Coop and the direction we are heading, “ Brian said. “There are projects we’re involved in that I would like to see completed in the next term.” During his tenure at Prairie Lakes, the cooperative has streamlined many of its operations and just recently completed a $5 million grain expansion project in Glenwood. Brian and his wife, Laura, have been married for 30 years. Laura works as a marketing specialist for American Solutions for Business. They have two sons, Taylor, 25, who is co-owner of a fireplace company in Bloomington, and Collin, 20, who is a student at St. Olaf College in Northfield. Curt Stark, 40, Kensington, joined the board in 2007 and is finishing his first term representing District 1. Curt’s dad was on the Hoffman Cooperative Board for more than 30 years, and Stark had always had an interest in joining the cooperative board one day. “I always find it interesting to find out what is going Curt Stark on through the whole cooperative area,” he said. “You get a better view of how the operation is doing throughout all their areas.” Curt graduated from North Dakota State University in 1993 with an Ag Economics degree. He is a third-generation farmer and farms with his dad, LeRoy. They raise corn, soybeans and wheat. He enjoys working with all of the employees at Prairie Lakes Coop and wants to continue to provide input to help make Prairie Lakes an even stronger cooperative. “I think the whole idea of being a member-owner is a good business structure to be in,” Curt said. “It provides dividends. It’s always better to be an owner of something. It makes you feel like you have a vested interest in it.” Curt is also on the Centrol Crop Consulting Board. He is active in Messiah Lutheran Church and enjoys recreational basketball activities. Curt and his wife, Heidi, a substitute teacher, have two children, Paige, 14, and Payton, 12. December 2011
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PO Box 580 Starbuck, MN 56381
PrairieLakesCoop.com How much would it cost this year to buy one set of the items mentioned in “TheTwelve Days of Christmas?” See answer on page 3
The importance of being safe
Carrie Krenz, Safety/Environmental Compliance Specialist Safety is very important here at Prairie Lakes. Having trained staff and emergency personnel is key to saving lives. Prairie Lakes has made it a priority to make sure our employees, as well as local fire department volunteers, have had hands-on training in a variety of possible scenarios. In July, our employees and several rural fire departments gathered for training on grain evacuation rescues in a confined space. The training was conducted by Safety and Rescue Technical Association (SATRA) near Starbuck at the Lauris and Sharon Johnshoy Farm. In addition to this training, Prairie Lakes Coop has provided Returning Value grants to local fire departments for the purchase of grain evacuation equipment in recent years. Events and grants like this help make our communities safer for our patrons, our employees, and Employees of Prairie Lakes Coop and local fire departments took part in grain evacuation our community members.
trainings in July at the farm of Lauris and Sharon Johnshoy.
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December 2011
Newsletter production by Jennifer Chick/In the Ink
→ What’s happening at our locations? Page 6
Glenwood expansion streamlines harvest lines
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fter a wet spring, our departments are right on track for the year-end numbers. Higher rail freight and lack of trains put us behind budget going into spring, but through the spring and summer, we regained our financial balance, which put us back on budget by our fiscal year end Aug. 31. At our upcoming annual meeting on Feb. 21, at the Holiday Inn in Alexandria, we will be able to share the year end numbers with you. Patronage checks will also be handed out. Come early for morning informational sessions in grain, energy, and agronomy. In November, CHS announced record earnings for fiscal 2011 (Sept. 1, 2010 - Aug. 31, 2011) of Brad Manderschied $961.4 million, of which an estimated $421 million will be returned to CHS owners as cash patronage, General Manager equity redemptions and preferred stock dividends during fiscal 2012. Prairie Lakes Coop was made possible by the merger of several local cooperatives into CHS Inc. and several CHS facilities in our region. By being part of CHS Country Operations, we continue to grow and service our customers’ needs. One of the great accomplishments in the past year was the $5 million expansion project at the Glenwood Elevator. The upgrades at our 100-car shuttle facility include a 750,000 bushel bin, a 500,000 bushel bunker, an additional dump pit, inbound and outbound scale, and an office for grain grading. It was close, but everything was in place and working by harvest. Our next project will be in the Long Prairie area. Long Prairie has seen tremendous growth in the past five years. This past year, we handled more than 2.5 million bushels as producers in that area transitioned from livestock and dairy operations to more cash cropping. This allows them to market more grain instead of feeding it. Better genetics have also played a part in the growth. Late planting, early frosts, hot weather during pollination, and green snap limited our producers’ yields in some areas. But fall weather was exceptional for harvesting, and we were able to get the harvest in with no major issues. Our company is strong because of the dedicated employees who put our producers first. Over the past few months, we have lost staff in various positions, and though we are glad those people had the opportunity to move on, we also realize it is our responsibility to bring in qualified people to replace them. We have been conducting many interviews to fill those spots and look forward to introducing you to the new employees in the coming months. Thank you for your patronage! I would like to wish all the patrons and employees of Prairie Lakes Coop a Happy Holiday Season. [email protected]
December 2011
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Exploring Energy W
e have just finished the busiest part of the year in the energy department and want to thank all our customers and producers for their patronage. We had a few challenges these past few months as the Alexandria terminal ran dry a Jason Fier few times, forcing us to bring in fuel from Certified Energy outside the area to keep tanks full. The Specialist booming oil industry in North Dakota is using a lot of fuel, which will continue to be a problem into the future. Supply dried up because of the function of product movement. You can only push so much fuel through the pipelines at one time. Just 30 years ago, harvest took several months to finish, but now the bulk of harvest is condensed down into a two-week timeframe. With no rain, there were no breaks to replenish and deliver, which intensified the problem. Having adequate on-farm storage can insure that you have fuel when it is needed most. We have tank and pump packages available, along with payment plans to cover those purchases. Thankfully, our corn drying season did not turn out to be as challenging as we thought it might be following the wet, late spring. Ideal weather conditions later in the summer and
Mark that date!
Our annual meeting, Feb. 21, is fast approaching. We will have a variety of information sessions before the noon meal, and member-owners will be able to pick up their patronage checks at the meeting. Julie Fox with CHS Equity will also be there to answer any questions you might have about equity redemption, estates, trusts, partnerships, or any other equity issues.
going into fall kept our drying season to below average. Now we are looking toward the future. In the next couple months, we will be putting in a bulk fuel site at the Glenwood elevator. On site will be two 10,000 gallon tanks, with a third to be installed later. These will be filled with Cenex Roadmaster/Wintermaster and Fieldmaster diesel. Not only will this be convenient for our customers, who will be able to fill up their semis when delivering to Glenwood’s upgraded grain facility, but we will also be able to fill our own trucks there. Customers will swipe cards at the facility and will receive monthly invoices. We hope to have the project completed in the next month or so. Now is the time to considering contracting your diesel fuel. In the last 10 years, if you contracted during the months of December, January and February, you should have been able to at least break even. Contact me at 320-293-9473, Steve: 320-239-2226, or the Starbuck office for more information. Reminders: Keep your tanks clear of snow for energy deliveries. SPCC regulations, for farms established after Aug. 16, 2002, have been pushed back to May 2013, but producers should still be working on having plans in place for oil spill containment. Farms established before that date should continue with their current SPCC plan but implement an amended plan no later than the 2013 date. We will have someone from CHS and/or the EPA at the annual meeting to talk about these regulations.
We are lucky to have someone like Julie come to our annual meeting so take advantage of her expertise while she is there. She can fix any errors so you are set for the future. Don’t forget about our Customer Resources tab at PraireLakesCoop.com. Through registration in this program, you can see your tickets, invoices and active contracts with Prairie Lakes. The information is updated daily. Enrollment
[email protected]
is through the website and usually takes 1-2 business days for approval and account access. And don’t forget, the countdown is on. After Christmas, there are only 55 days until spring training. Go Twins!
Gene Mueller Controller
[email protected]
Financial News by Tracy Swenson, Business Solutions/Financing & Credit
Confina Financial changed its name to CHS Capital in August to better reflect its alignment with CHS and the cooperative system. Prairie Lakes has merged its in-house credit program with CHS Capital to streamline processes while providing producers with a very competitive option for financing everything that today’s growers need to maximize their farm’s potential. CHS Capital offers extremely competitive interest rates on inputs and products from Prairie Lakes with high available credit limits. In some cases, producers can borrow money with no interest due. We also have a buy-down interest program, and the credit limit for the simple one-page application has been increased to $200,000. Set up your financing early to take advantage of early order discounts. You can lock in lower rates by taking advantage of our finance program. Because we are your cooperative, we have an entire range of experts at your disposal to connect your grain marketing to your ag inputs and financial inputs for a strategic partner for your operation. We understand ag cycles and we have more flexibility in our financial outlook because we understand the problems that producers face on a day-to-day basis. If a crop is wiped out, we know as soon as you do because our Prairie Lakes account advisors keep us updated regularly. If interested in finding out more, contact me at 320-239-2226, or Don Geiszler at 320-219-0777. December 2011 2 2 December 2011
Fall harvest sped past G
reetings everyone. Fall grain harvest went very fast. Who would have thought that with all the rain and storms this summer, it would dry up and stay warm? Combining was all done by the end of Oct, and most of the field work is complete also. With the late cold, wet spring, I would never have imagined the crops would come in dry. Our area got hit with many storms and very high winds, causing widespread green snap and drowned out acres so yields dropped quite a bit. Soybean yields are down about 25% with the same on corn. Some areas were better; some worse. Dan Kvitek With harvest done and put away, basis has improved with the Grain Marketing smaller crop and very little movement. That is understandable. Division Manager I don’t know how much better the basis will get, but the board was down almost a buck in early December so one never knows. Ethanol margins have been good and are making up for the lack of export demand. Please be checking your grain bins as reports of corn getting warm have been coming in. With the warm fall, corn did not get cooled down. I would like to thank all our patrons for their support. I hope you have Happy Holidays and a safe and prosperous New Year. I would also like to thank all the employees for the great job they did. [email protected]
Precision Ag Update
Nathan Kosbau, Precision Ag Specialist 320-360-3367 As the fall season draws to a close, many growers are inquiring about the application of yield data from the fall. The 2011 growing season was incredibly difficult, and most satellite images show many problems including drown-outs, disease, and green-snap. Yield data identifies field problems but also shows variations exist in the field. Many growers have commented that they might not analyze the yield data due to all the weather factors, but an important piece is missing from that equation. Other field variability factors (such as nutrient availability problems) become more apparent when plants succumb to environmental factors. Prairie Lakes Coop is utilizing this information, along with other more favorable growing season years, to continually develop a sustainable approach to managing yield zones and maximizing profitability. By thoroughly examining all the data resources available, yield gains can be made, even in the most difficult growing seasons.
Seed shortages
Mike Kragenbring, Elrosa 320-250-6857 Seed shortages are affecting decisions of producers across the country. Demand is high, but production problems from weather issues across the country caused seed shortages with all companies. We are recommending that producers order early so they have a better chance of getting the seed they want. Because of the wet weather last spring and the wind later on, a handful of products stood out. Consistently, hybrids that have been around longer seem to be doing better. Make sure that you choose products with a good track record. There are a lot of new soybean varieties, and a lot of companies rolled their line-ups over, bringing in new products, new technologies, and advances in breeding. Prairie Lakes works with Croplan, Asgrow-Dekalb, Northrup King, and Mycogen. Contact your account advisor about the type of seed you want and get it ordered as soon as possible.
Your country resource
As a grain marketing consultant, I am available to help producers at all of Prairie Lakes’ locations, Martha Licari answering Grain Account any questions Advisor producers might 320-808-9401 have and keeping them up-to-date on the latest news in the markets. I can place marketing orders, help figure input costs, evaluate profit/loss sheets, and guide producers through a variety of scenarios relating to their grain marketing needs. My schedule allows me the flexibility to meet with producers wherever it is most convenient. I also visit Long Prairie, Cyrus, and Elrosa every week to talk with producers about marketing plans. We offer producers even more indepth information, knowledge and background that might be helpful when making marketing decisions. I first started working out of our Lowry location as a bookkeeper and office manager. In 2009 I transitioned fulltime into my current role as grain account advisor. If you need help with your grain marketing needs or have any other questions, call me or any of our grain locations. I would be glad to meet with you and help you determine the best plan for your farm.
Answer from back page:
It would cost $24,263 to buy one set of items from “The Twelve Days of Christmas.” Seven swans-a-swimming are the most expensive at $6,300.
December 2011
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Reflecting back while looking forward in agronomy Thanksgiving is over. The harvest is done, and we now have a chance to reflect on what worked and what Bill Frikken didn’t in your 2011 Agronomy Division crop. There were Manager a lot of weather challenges that lowered yields this year, but harvest weather was about as good as it gets. We won’t think about last year for too long, however, because 2012 planning has already started. We had an excellent fall fertilizer and lime season. Precision led the way with grid sampling, making recommendations to take advantage of managing every acre. I am sure you have heard by too nowearly thattoseed is in shortforsupply It’s not lock-in profits 2012. as New there are going to be offering more corn acres Horizons is already producers planted next to year. A lot companies an opportunity lock-in theiroffertilizer are andcrop fertilizer pricespromoting for 2012. At additives this time, new sales can also be contracted, andand withsome pricesaren’t high, enhancers. Some work noweffective is the time capitalize on our historic profit as sotocheck with account margins. advisors before you make a decision. Our “At thisadvisors point, with some the numbers account can helpofyou with farm we’ve punched in, producers can gross planning, weed control, plant health and $100-200 per acre for next year’s crop,” other production details as well. said Don Geizler, a country loan officer with Fertilizer markets are softening a Cofina Financial located out of New Horizon’s
little right now. As of the beginning of December, urea and potash have dropped slightly. This, like all of the other markets, could change daily. Liquid fertilizer still is in tight supply. One of our longtime employees has taken a promotion with CHS as a Sales Specialist with Country Operations. Mary Stalberger will be working with Country Operations business units like Prairie Lakes Coop throughout Minnesota, North Dakota and South Dakota, putting sales programs together and helping their sales personnel. Mary has worked for Prairie Lakes for many years and has been instrumental in our growth and success. Mary will be still available to Prairie Lakes but on a more limited basis. Mandy Fischer, whose Prairie Lakes responsibilities included marketing, advertising, web page, and annual meeting, took a job with CHS at Gettysburg, S.D., advancing her career with additional responsibilities. We will miss Mandy’s skills, but congratulate her on her advancement. Byron Fischer, a longtime technical account advisor for PLC, has taken a job with BASF covering all of South Dakota as a New Innovation Specialist. This is a new
Herman office. Geizler said this tandem approach of locking in fertilizer prices while contracting grain looks to be a prudent approach. If producers pay for 25 percent of their 2012 Nick Smeby, Long Prairie, 320-732-2149 fertilizer purchases right now, the remaining 75 Long percent is notisdue until January 2012. Lakes trade territory Prairie unique to the Prairie New Horizons has financing available because in the last decade producers on smaller acreages through Cofina to provide for this without have transitioned from feed crops and pasture to cash crops. creating issues with 2011 lines of credit. As the acres are transitioned, producers need to think about Cofina can help producers with the entire the nutritional needs of thedown. crops being planted. Not many loan, including the 25 percent acres aresnow fertilized in the we into are much busier in the As the melts and youfall getsoback spring a per acre basis. the field,onthere will be little time to think about toto plant. Use Thisthese is theissues timeinofthe therush year be thinking about seed your time wisely now to think about 2012 purchases too, especially with the widespread seed shortages crop planning. affecting the industry. Look at putting prepay down on Also, don’t forget that New Horizon’s infertilizer as well as any other chemicals you might be needing. house extended credit program deadline is Chemical March 25. prepay incentives continue through February. For more information on 2012 fertilizer prices and grain contracts, as well as financing information, contact your local agronomist. You can also contact Don at 320219-0777 or Russ Rapp, New Horizons credit manager, at 320-677-2251. 4 December 2011 4 December 2011
position wih BASF but fits Byrons’ skills very well. Alicia Meissner, an account advisor and support person for operations and crop insurance, has taken a insurance position with another company. We will miss her skills. Congratulations to all of these former employees as they head to their new positions. We have recently hired Matt Bailey, a South Dakota State graduate who has been working with Centrol Crop Consulting for three years as a summer intern. Matt grew up on a family farm near Villard and will be an account advisor support person in Elrosa. Welcome aboard Matt. Hopefully I haven’t missed anybody. CHS is a company with unlimited career opportunities. Although we don’t want to lose qualified employees, we are proud to see them advance. Prairie Lakes employs more than 100 people throughout our eight locations so we are constantly looking for qualified job candidates as people come and go with new opportunities Thank you for the business , have a Merry Christmas, and a successful Happy New Year! [email protected]
Around the Country with our Account Advisors ... Prairie Lakes account advisors are great resources. We spend many hours in meetings during the winter months to make sure we are up-to-date on the latest information to pass along to producers. Call me or Guy Bray in Long Prairie anytime with questions or concerns you might have.
Account Advisors Outlook
Bruce Krabbenhoft, Park Rapids 218-255-4119 Seed production issues are causing shortages as producers begin to assess which varieties they will plant this spring. In my coverage area, I am advising producers to order their seed as soon as they can while there is still some availability out there. Here in Park Rapids, our shorter growing season, where we grow edible beans, soybeans, corn, and potatoes, means it is even more critical to find the right seed and get it ordered. At this point of the year, I have already sold more corn than normal. Instead of waiting until harvest was over, I was out talking to producers in the fields to bring in those seed orders while there was still supply. That’s about a month earlier than I would normally bring up the subject. We had a dry fall so many of the area fields did not get worked as they normally would. We have had little to no moisture since July, which will mean a backlog of work to be done this spring.
Lonnnie DeSmith, Starbuck, 320-808-8609 As account advisors and agronomists, our job is to help producers extract every bushel from every acre. Every bushel counts and it is our job to separate the snake oil products from the products that work. Every year, we see countless salesmen promoting their products. We analyze the data to determine which products should produce the best results for our producers. If we sell a customer a product that they invested in expecting a significant yield increase, it is our reputation on the line. Here are some of strategies that we feel will be successful for you this next year. Ascend, a plant growth regulator, has been showing much potential in more than 190 replicated trials. In those trials, 67 percent of the time plants showed an average 8.1bushel increase, which is a 5 percent increase. Over every acre planted, the average was an increase of 3 bushels per acre. That equals out to a $10-12 per acre advantage in farmers' pockets. Ascend, which is put on in the furrow, can be used for both corn and soybeans. Seed treatment. Prairie Lakes has a seed treater at the Hoffman facility where producers can bring their soybean seed to be treated prior to planting. Depending on disease pressure, there can be significant benefits to treating soybean seeds this year. Data in side-by-side trials supports increased yields. Variable rate fertility is the number-one strategy to increase yields. It doesn't matter if you have the best hybrids on the market if you don't have the fertility where you need it. Grid sampling can identify different areas of fertility so you can get the most out of each and every acre. Through grid sampling, you are fertilizing every acre to its maximum potential.
Kip Kovarik, Hoffman, 320-986-2454 Nitrogen management is a hot topic right now. ESN, or Environmentally Smart Nitrogen, is available in bulk bins at Hoffman, Park Rapids and Starbuck this year and could be a great tool in releasing nitrogen to your crops when they need it. ESN is an encapsulated poly-coated urea product that slowly releases nitrogen during a 60-day interval through triggers from temperature and moisture. Last year, when excess moisture caused nitrogen leeching, ESN would have been a perfect fit. The poly-coated capsule is activated by moisture and heat which melts the coating so nitrogen releases when nitrogen deficiencies typically show up. ESN works best on sandy soils where leeching occurs at a higher rate. In areas of high nitrogen loss, ESN shows a 15-20 bushel per acre increase over other nitrogen sources. ESN can be applied like any other urea product. It can be blended with potash and phosphates and is a 44-0-0 product. It can also be side-dressed at the V-4 growth stage. At mid-season, plants require the most nitrogen. If ESN is put down about one week before planting, that nitrogen is available at mid-season. ESN can be applied at a variable rate. However, ESN is not intended to be the plant’s only nitrogen source. You will also need nitrogen early in the season when plants start growing. Agrotain is another slow-release product, a urease inhibitor which prevents the vaporization of urea into the air. It increases the chance that urea will be absorbed into the soil after rain. Instinct and N-Serve are soil treatment bactericides. They prevent soil bacteria from converting NH4+ (Ammonium) to NO3- (Nitrate). They have the same active ingredient but are packaged in different formulations. N-Serve is for anhydrous ammonia and Instinct is for use with urea, 28% and manure. We’re to the point where we require better management technologies to follow a CSP program or for pushing those next few bushels in high management corn. Contact any of your account advisors and they can determine your nitrogen needs, helping you get the best yield for the best profit.
Make it a point to call your agronomist to discuss your strategy for next year.
December 2011
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Location Lowdown
Denis Stalboeger Long Prairie location manager
Long Prairie has experienced a tremendous amount of growth over the last three years. The location is primarily an agronomy and grain location with energy growth on the horizon. The grain department experienced the most growth over this period. Three years ago, we handled approximately 250,000 bushels, and today, after completing our fiscal year, we have handled 2.5 million bushels through a facility with a holding capacity of 80,000 bushels. As producers are looking for grain marketing expertise and the capability to handle a large volume of grain, they are finding it at Long Prairie. Precision ag has also accelerated our growth as producers utilize new technologies to maximize the profitability in their operation. Our employees have worked very diligently to make sure producers have the information and strategies they need to succeed. Most importantly, the growth in agronomy and grain is due to the optimism and the enthusiasm of employees and without them, the growth in Long Prairie, and PLC as a whole, would not have been possible. Our fall harvest was good with the improvements in Glenwood and Long Prairie making it the smoothest operating harvest ever. Thank you to our employees for their hard work and thank you to our patrons who have supported us through this season of growth.
Chuck Schlagel, Park Rapids Location Manager Park Rapids is a location in transition. Our location is experiencing growth in the size of farms, which was spreading our sales staff pretty thin. We have now doubled our sales staff and are making equipment changes to better handle the increased business. We are adding a new fertilizer leg and dump pit, and an addition to the current office will provide space for three more offices. All of these projects will result in a much appreciated upgrade at the facility to benefit both employees and producers. Producers in Park Rapids raise a variety of crops, from corn to potatoes to kidney beans. Potato acres are increasing for the 2012 season and if you have eaten a McDonald’s french fry, it might have come from growers right here in Park Rapids. If the sales force continues to keep increasing acres up here, we might be looking to add even more employees to our staff of 8 fulltime and 3 part-time employees. Agriculture is an exciting industry right now, and we look forward to what the future might bring.
Tim Guza, Glenwood Location Manager We have had another good harvest, and I would like to thank all the patrons for their continued support. I would also like to thank all the employees for their hard work and dedication. The bushels were short, but the quality was there. Last April we started a major grain expansion in Glenwood. This expansion added two new scales, a new 750,000 bushel bin, a second dump pit, 500,000 bushel bunker and an office. This new storage has brought the Glenwood elevator up to 1.9 million of upright storage and about 1.8 million bunker storage. With this new system, each truck has a card that the driver swipes at the probe and at the scale. This new system allows us to keep lines short and move the grain through the system fast. It has also allowed us to keep our substation grain flowing. Please feel free to contact your Prairie Lakes team for all your marketing needs.
Scott McKay, Hoffman Location Manager Precision ag continues to change the way producers are looking at their fields. Here at Hoffman, we covered record acres with our deep bander and anhydrous bar applications this fall. Our gridding acres also increased from about 25% last year to 50% this year. Precision fertilizing continues to be an area where producers are seeing the benefits translate into higher yields. This fall also brought beautiful weather for getting fall fertilizing done, and we’ve had the time to finish a lot of extra projects that will benefit our producers. And don’t forget as you plan for year-end taxes and begin farm planning for spring, our account advisors are ready to assist with those decisions.
Danny Olson, Lowry Location Manager We had a challenging harvest at our Lowry location when an Aug. 1 storm took down our wet and dry grain legs and the top of our grain dryer. There was extensive damage to our other facilities too. Our west driveway door was blown in. The storm took a piece of the feed house and dropped it through the roof of the dump pit area. It also took the steel roof off the office so rain got in, causing the office ceiling and insulation to fall down so we had to redo that as well. With no dryer and drying legs, we went through harvest piling wet corn on the ground. We had close to a million bushels of wet corn stacked up around here, but things were back together by the end of harvest so we caught up. Now things are back to normal, and we are thankful for the nice fall.
Gerald Imdieke, Elrosa Location Manager We are finishing lime applications and putting away equipment for the winter months. The account advisors have been busy getting seed orders and selling chemical and fertilizer for the new year. They also are starting to work on farm plans for the upcoming year. If you have not been contacted and are ready to plan, contact your account advisor. The account advisors are also training on new product information so they have the most accurate, up-to-date information to share with you. Thank you for your business this past year. 6
December 2011
Richard Kiehm, Cyrus Location Manager We are very thankful that harvest went so smooth this fall. Corn was of good quality, and it was a relief that we didn’t have to dry much. We were able to haul daily to the ethanol plant so we never went full. At the Cyrus location, we have picked up our bean pile. As we enter the winter months, we will be concentrating on OSHA regulations, making sure we are making our location as safe as possible for our employees and the producers who do business with us.
Denny O'Neill, Starbuck Location Manager The interest in precision agriculture has been exceptional this fall. Of the custom applications we did this fall out of Starbuck, 72% were precision ag, and we continue to grid sample more acres every day. Producers are seeing results with precision agriculture. We have been doing precision ag at Starbuck since 2007, and as they see results, growers have been very receptive to putting even more acres into the program. The results are showing up in the combine seats and on the combine yield monitors. We've had the biggest fall market for fertilizer at this location in the history of the company. Tonnage was up 15%, and application acres were up 25%, with all of the increase coming from precision ag. Prairie Lakes continues to invest in its precision ag program. We added another precision rig last spring, and both of our trucks are capable of mulit-bin precision rate. All our custom applicator machines are precision capable for applying dry fertilizer, ammonia and lime. Precision ag puts the right product on the right acre to help producers get full potential from every acre.
Meet Chuck Schlagel
Chuck Schlagel, the new location manager at Park Rapids, is steering the location through a transition as its customer base grows and various building Chuck Schlagel is the new location manager projects help Park at Park Rapids. He is Rapids extend its married to Jewell. reach even more. “In these economic times,” he said. “Agriculture is a fun industry to be in.” Chuck joined the company in September. He grew up on a farm near Murdock, where his love of agriculture began. He has worked in research and sales for Dekalb and also was district sales manager for Mycogen Seeds. He has managed Sanborn County Farmers Union Oil Company in Woonsocket, S.D., and most recently, he was manager of Clarks Grove Fertilizer LLC. Chuck is married to Jewel, and they have two sons: Ben, and his wife, Kelli, and their two children, Ashton, 4, and Lydia, 2; and their youngest son Joey, and his wife Nicole, and their two children, Bronwyn, 4, and Rowan, 2. Chuck has traveled the contiguous 48 states and Canada on motorcycle and has recently taken up bicycling. He enjoys the outdoors and spending time with his family.
Directors up for re-election Two of Prairie Lakes’ eight directors on the producer board are up for reelection at the annual meeting in February. Brian Jergenson, 54, of Glenwood, has been on the board for three terms. He was elected in 2001 and has been chairman since 2009. “I enjoy being on the board because I find ideas that help with the day-to-day operations of our own farm as well as hearing about what other peoples’ insights Brian Jergenson for the future are,” he said. Brian worked for more than 30 years at both Case IH and John Deere, which allowed him to meet many of the producers he now represents in District 3. In 1984, he bought his first farm ground and is a fourth generation farmer who raises corn and soybeans in the hills south of Glenwood. As a director, he promotes Prairie Lakes Coop but also communicates with the producer-owners that he represents, listening to their concerns and bringing those concerns to the board room. “I’m comfortable with most situations that arise now and have a good feel for Prairie Lakes Coop and the direction we are heading, “ Brian said. “There are projects we’re involved in that I would like to see completed in the next term.” During his tenure at Prairie Lakes, the cooperative has streamlined many of its operations and just recently completed a $5 million grain expansion project in Glenwood. Brian and his wife, Laura, have been married for 30 years. Laura works as a marketing specialist for American Solutions for Business. They have two sons, Taylor, 25, who is co-owner of a fireplace company in Bloomington, and Collin, 20, who is a student at St. Olaf College in Northfield. Curt Stark, 40, Kensington, joined the board in 2007 and is finishing his first term representing District 1. Curt’s dad was on the Hoffman Cooperative Board for more than 30 years, and Stark had always had an interest in joining the cooperative board one day. “I always find it interesting to find out what is going Curt Stark on through the whole cooperative area,” he said. “You get a better view of how the operation is doing throughout all their areas.” Curt graduated from North Dakota State University in 1993 with an Ag Economics degree. He is a third-generation farmer and farms with his dad, LeRoy. They raise corn, soybeans and wheat. He enjoys working with all of the employees at Prairie Lakes Coop and wants to continue to provide input to help make Prairie Lakes an even stronger cooperative. “I think the whole idea of being a member-owner is a good business structure to be in,” Curt said. “It provides dividends. It’s always better to be an owner of something. It makes you feel like you have a vested interest in it.” Curt is also on the Centrol Crop Consulting Board. He is active in Messiah Lutheran Church and enjoys recreational basketball activities. Curt and his wife, Heidi, a substitute teacher, have two children, Paige, 14, and Payton, 12. December 2011
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PO Box 580 Starbuck, MN 56381
PrairieLakesCoop.com How much would it cost this year to buy one set of the items mentioned in “TheTwelve Days of Christmas?” See answer on page 3
The importance of being safe
Carrie Krenz, Safety/Environmental Compliance Specialist Safety is very important here at Prairie Lakes. Having trained staff and emergency personnel is key to saving lives. Prairie Lakes has made it a priority to make sure our employees, as well as local fire department volunteers, have had hands-on training in a variety of possible scenarios. In July, our employees and several rural fire departments gathered for training on grain evacuation rescues in a confined space. The training was conducted by Safety and Rescue Technical Association (SATRA) near Starbuck at the Lauris and Sharon Johnshoy Farm. In addition to this training, Prairie Lakes Coop has provided Returning Value grants to local fire departments for the purchase of grain evacuation equipment in recent years. Events and grants like this help make our communities safer for our patrons, our employees, and Employees of Prairie Lakes Coop and local fire departments took part in grain evacuation our community members.
trainings in July at the farm of Lauris and Sharon Johnshoy.
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December 2011
Newsletter production by Jennifer Chick/In the Ink
